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NEW QUESTION: 1
Place the type of budget or cost against its definition.
Answer:
Explanation:
NEW QUESTION: 2
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Answer: A
NEW QUESTION: 3
Kaylee Sumners, Level 1 CFA candidate, is having difficulty remembering the tests for the three forms of the efficient market hypothesis (EMH). On her first attempt to outline the information from memory, she made numerous mistakes. After reviewing the material, she tries again to summarize the information. This time, three of her four points are correct. Which of her summary points is INCORRECT?
A. The tests for the semi-strong form EMH give mixed results. Time-series tests such as dividend yield and default spread reject the semi-strong form EMH and event studies on stock splits and announcements of accounting changes support it.
B. The historical performance of professional money managers supports the strong-form of the EMH.
C. Early tests of the semi-strong form used the formula:ReturnAbnormal= ReturnActual- RMarket
D. Results of trading rule tests, such as filter rules, support the semi-strong form of the EMH.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Results of trading rule tests, such as filter rules, support the weak form of the EMH.
The other choices are true. Tests show that professional money managers perform no better than a random buy and hold strategy. This supports the strong form EMH contention that stock prices reflect all information- public and private. (Aside from corporate insiders and specialists, no group has monopolistic access to information that would result in superior returns.)
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